Vancouver, British Columbia and Denver, Colorado–(Newsfile Corp. – January 28, 2020) – Cannabis One Holdings Inc. (CSE: CBIS) (“Cannabis One“, “CBIS” or the “Company“), an emerging, premier “House of Brands” in North America, is pleased to report that it has completed construction and build out of the second branded flower cultivation facility, also known as “Fox Street”.
Fox Street is a state of the art, 13,000 sq ft craft quality cultivation facility that has the capacity to produce 4,800 lbs of flower per year, an increase in cultivation capacity of 200%. This will allow the Company to achieve average monthly flower production of 600 lbs, leading to an annual top line Colorado cultivation revenue of USD$11,700,000 and a gross profit of USD$7,560,000 at the current Colorado per pound average of USD$1,500. First harvest is expected in March with monthly harvests planned thereafter.
This facility was built to cater to the demand of the three specific strains that Cheech Marin selected for the Cheech’s Stash line. The Company further expects to drive margin growth through the expansion of its Cheech pre-roll and other craft cannabis lines that are currently sold in over 175 dispensaries across Colorado.
The Company is also pleased to announce that due to exceptional demand of the above-mentioned Cheech’s Stash-branded flower and pre-rolls in the state of Colorado, it has begun plans to expand the Kingston cultivation facility from 8,500 sq ft to over 16,500 sq ft. This expansion will more than double the production at Kingston, exceeding 400 pounds of flower per month or 4,800 pounds annually.
The expansion of Kingston will be funded through cash flow from operations.
Cannabis One expects to exit 2020 with over 9,600 pounds per year of branded flower production from its Colorado operations with an exit 2020 cultivation run rate of USD$14,400,000 and a gross profit of USD$10,080,000.
Jeffery Mascio, CEO, and Joshua Mann, President of Cannabis One jointly commented, “With demand for our branded flower at an all-time high coupled with flower prices in Colorado that have steadily been climbing over the last 12 months, our entire team is extremely pleased to see the Fox Street facility come on line. With further expansion of our branded cultivation in Colorado, we expect to show strong cash flow generation as the year continues, allowing us to further expand our offerings within the state. Over the coming weeks and months, we are looking forward to showcasing further cash flow drivers that are fully funded and require no further dilution.
About Cannabis One
Cannabis One Holdings Inc. (CSE: CBIS) is focused on aggregating and optimizing popular cannabis brands throughout North America. With its unique retail brand, The JointTM, and through targeted acquisition and partnership opportunities, Cannabis One intends to become the premier, globally-recognized “House of Brands”, holding a client portfolio of award-winning products with an extensive market footprint. Through the Company’s The JointTM retail concept, Cannabis One intends to leverage the consumer and brand data harvested from its retail locations to bring data-driven analytics to an emerging, branded industry. For consumers, Cannabis One desires to become the definitive source for unparalleled product selection and renowned service in an otherwise fragmented market.
Disclaimer and Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “anticipate”, “could”, “intend”, “expect”, “believe”, “will”, “projected”, “potential”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.